I know this is mostly a board for shilling crypto ponzis but I was hoping we could have a genuine discussion on finance, specifically real estate.
Why does the US government tax incentivize investment in real estate so heavily? It seems so bizarre and backwards to me. Higher and higher real estate prices means more and more US consumer dollars being locked away in illiquid housing equity. Higher prices means bigger mortgage payments, which means greater prices for renters as well, who must spend half their monthly income on rent, money that would likely have otherwise gone to stimulating the economy in some way. Instead, that money goes to a landlord, who is likely going to use it to further invest in real estate, typing up even more money into decaying buildings and driving prices higher. With less incentives to rent, that's less people living near city centers, less people stimulating local bar/restaurant/activity economies, more cars and congestion in and out of cities, causing greater pollution, congestion, and fuel consumption.
Is there something I'm missing here? How does real estate stand to benefit the overall populace and economy outside of the narrow populace of real estate investors?
>How does real estate stand to benefit the overall populace
They don't give a shit about anyone but home-owning Boomers.
Gabriel Martinez
Real estate employees a lot of people, plumbers, carpenters, masons, and so on. Inflating the real estate market create jobs, not a lot of other investments does that.
Blake Perez
Imagine paying $6600 leafbuxs a year in property tax for that shitbox.
That sounds nonsensical. If I own a pizzeria and need repairs on the bathroom or an extension built, I am not paying for that based on the equity I have locked away in my mortgage for the pizzeria itself (that's even to suggest I am not renting it in the first place). Those repairs/renovations are paid for by the business being done inside the building itself.
Logan Flores
>Why does the US government tax incentivize investment in real estate so heavily? They know that most Americans are broke as fuck, so they need foreign money coming in to buy up the homes and keep the bubble going.
Josiah Ramirez
The better the real estate market performs, the more houses are being constructed, and following that the more people are employed. likewise, the better the real estate market perform, the more people are gonna "flip a house" and repair a house in order to raise its market value.
